The chief executive officer of a California investment firm has pleaded guilty to orchestrating a Ponzi scheme that defrauded investors of approximately $380 million, federal prosecutors announced on Wednesday.
Plea Entered in Federal Court
Jeff Carpoff, 49, entered his guilty plea in U.S. District Court in Sacramento, admitting to wire fraud and money laundering charges. Carpoff was the head of DC Solar, a company based in Benicia, California, that claimed to manufacture mobile solar generator units.
Details of the Fraudulent Operation
According to the U.S. Attorney’s Office, Carpoff and his associates falsely told investors that DC Solar’s mobile solar generators would be leased out to provide emergency power for cell phone companies and to power lighting at sporting events. However, prosecutors stated that most of the generators did not exist and that the company paid early investors with funds collected from new investors.
Lavish Spending Revealed
Prosecutors reported that Carpoff and his wife, Paulette Carpoff, used the proceeds from the scheme to finance a luxurious lifestyle, which included the purchase of more than 150 cars, several properties, and a minor league baseball team.
Sentencing and Asset Forfeiture
Under the terms of the plea agreement, Carpoff faces up to 30 years in prison. He has also agreed to forfeit assets acquired through the fraud, including vehicles, real estate, and other valuables.
Additional Charges and Ongoing Investigation
Several other individuals associated with DC Solar have also been charged in connection with the scheme. The investigation remains ongoing, according to authorities.
